Some fixed manufacturing costs of the current period are deferred to future periods through ending inventory under variable costing.

Name: Some fixed manufacturing costs of the current period are deferred to future periods through ending inventory under variable costing.
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Question

Quizplus · Accepted Answer

Under variable costing, only variable manufacturing costs are assigned to inventory. Fixed manufacturing costs are expensed in the period they are incurred, not deferred to future periods through ending inventory.

Some Fixed Manufacturing Costs of the Current Period Are Deferred